Short term Momentum Trade: Jubilant LifeSciences

MAIL SENT TO CLIENTS ON NOV 7 TH

TOLD TO BUY@ 97 TODAY STOCK HIT 120 STILL LOOK HOT FOR SHORT TERM

THIS WAS MY MAIL ON NOV 7TH


As you can see in the chart below: Jubilant Life Sciences has made a decent move in last few days and that too on impressive volumes. That’s not all – the move has broken the downtrend of the stock. The stock appears set for much higher levels after some consolidation at current levels. 
Trading Strategy:
One can Go Long on the Stock at CMP with no stop loss as of now. We will review the stock little later and take the call on stop Loss. A reversion to mean move can take the stock to 200 dma i.e. 143.

Piramal Enterprises: Building launchpad for Take off

Piramal Enterprises is a Leadership stock and has been building base for major take off in 2014. Here’s why

Piramal Enterprises made a stunning recovery in 2009 and rallied to NEW HIGH then and there itself. It made a new high around 550-560 in May 2010.

 

Formation of Resistance around 540-560
Piramal Enterprises Weekly Chart

It took about 2 years and few months before stock broke out in late 2012 above 540-560. The stock rallied to 620-640 but then move fizzled out and it has been a year since breakout and stock has done nothing.
Breakout and Consolidation
Breakout and too much of consolidation is healthy sign and it’s just a matter of time before stock takes off in a major major bullish way. It means the next bullish move will be exponential and will happen in short period of time, if it happens. Right now, stock does not have any energy and it can slip to 100 week ma. It’s only when stock slips below 100 week ma: we will have to question and review the leadership status of the stock
What does this mean?
Piramal Enterprises is a Leadership stock and currently under bullish consolidation above 100 week ma. One can Buy the stock with closing stop loss at 3% below 100 week ma( now 517). The stock looks like to be in multi year Bull market till it proves otherwise. The stock is good for investment and one should be prepared to hold for longer time of time as long as stock does not breakdown below its bullish structure.